The general directorate of the Ministry of Finance in Adlieh, on Jan. 16, 2026. (Credit: Philippe HAGE BOUTROS / L'Orient-Le Jour)
Finance Minister Yassine Jaber has issued a decision setting out the mechanism that allows taxpayers to benefit from reductions in penalties imposed in cases of tax adjustment, a measure aimed at "strengthening tax compliance and easing the burden on citizens."
The decision specifies the applicable penalty reduction rates for the various cases provided for under the law. Taxpayers may thus benefit from a "90% reduction in situations meeting the established conditions, while the reduction will be 75% or 50% in other cases, depending on the nature of the tax involved and the steps taken within the required deadlines," according to the text.
"These reductions are conditional upon taxpayers paying the amounts owed within the timeframe required to benefit, which expires on Dec. 31, 2026, and apply only to situations fulfilling the legal and regulatory conditions mentioned in the text," it further reads.
This decision was issued Thursday under the finance minister's prerogatives and therefore did not require a new parliamentary vote or approval by the Cabinet, according to a source at the ministry. However, this authority stems from Law 662/2025, as amended by a provision in the latest state budget (Law 40/2026), which reaffirmed it.
According to the source, the ministry views the decision, in the current context, as a compromise aimed at encouraging taxpayers — who fear heavy penalties — to regularize their tax declarations and payments. The source also acknowledged the measure's potential downside: It could encourage some taxpayers to delay meeting their tax obligations in anticipation of a similar measure being adopted in the future.
The ministry’s efforts to improve tax collection since the formation of the Nawaf Salam government have been complicated by the suspension of all legal and administrative deadlines approved by parliament during the first of the last two wars between Hezbollah and Israel, the same source added.
"This law postponed taxpayers’ income tax declaration obligations until the end of 2025, which means the tax administration could not move forward before then," the source said. "In this context, the penalty reduction measure presents more advantages than disadvantages, but it is just one of the tools at our disposal to improve the level of tax compliance in the country," the source continued.
Minister Yassine Jaber is among Lebanon's main interlocutors with the International Monetary Fund (IMF), which the country — in crisis since 2019 — has turned to in an effort to secure a financial assistance program conditioned on the implementation of reforms.
